MGI Australian Family and Private Business Survey - June 2013

Ownership:

Owners in the 60-69 age bracket - 37% - up from 21 % in 2010 (average age now 58)  Business objectives:  

55 % accumulate wealth, 21 % pass onto next generation, 9 % employ family members

 34 % do not have an adequately funded retirement plan (up from 17% in 2006) Sale of business: 

Would seriously consider selling if approached 64% (25 % have been approached in last 12 months) - 79 % of non-family firms

Plan to sell (now or later): 44 % (75 % of non-family firms) Of those that plan to sell:

 Wish to retire 32 %Have concerns for future 25 %Lack of family successor 21 %Original intention 10 %Sale price exceeds expectations ( down from 20 in 2003 and 17 in 2006 )

6 %

 Leadership succession: 

41 % believe that it is not feasible to implement leadership / management succession into their family business:

58% indicate younger generation NOT interested in actively managing the business. 40 % indicate the current family CEO is likely to be succeeded by non-family manager Only 20.4 % have a clear process for successors to develop as individuals, in their roles

and in the business.  Issues and Challenges: 

Letting go of leadership and control     37% Securing adequate capital for growth and retirement  36% Providing liquidity for family owners to exit 33 % Choosing a suitable ownership structure for the next generation  33 %

 Succession: 

75 % have NOT agreed proposed succession plan 33 % relying on sale of business for cash to fund retirement

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